Sterling Financial Holding Company Plans $400 Million Capital Raise
Sterling Financial Holding Company has announced its intention to raise $400 million in new capital through a mix of debt and equity. This initiative will be voted on during the firm’s upcoming annual general meeting (AGM) scheduled for June 9, as detailed in a recent statement from the company’s secretary, Sunny Kanabe, posted on the NGX Group platform.
Continuing Previously Approved Capital Raising Efforts
The new capital-raising strategy will not conflict with prior approvals received during the company’s shareholders’ general meeting, which is set for July 11, 2025. In July, Sterling Financial had already expressed plans to secure $400 million through various financing mechanisms.
Diverse Financing Options Available
In its statement, Sterling Financial elaborated on the potential methods for generating this capital. The firm indicated that it could issue debt instruments, including both convertible and non-convertible debt, as well as preferred stock, common stock, and World Depositary Receipts.
Authorization for Public and Private Offerings
The financial institution also noted that new capital could be acquired through public offerings, private placements, rights issues, and other approved methodologies. Specific terms such as pricing and timing are to be determined by the board of directors, subject to appropriate regulatory approvals.
Board Endorsement for Capital Increase
The resolution grants the board the authority to raise up to $400 million or an equivalent amount in other currencies. This capital increase may occur in either the Nigerian or international capital markets, utilizing various forms such as public offerings or private placements, contingent on necessary approvals from both the Board of Directors and regulatory authorities.
Amendments to Company Structure
Should the capital increase involve issuing new shares, the board also holds the authority to raise the company’s capital and allocate shares as needed to support this initiative. The resolution includes provisions allowing the board to amend the company’s Memorandum and Articles of Association to reflect any changes resulting from this capital exercise.
Empowering the Board for Transaction Execution
Furthermore, shareholders will be asked to empower the Board of Directors to take all requisite actions for executing the transaction, including obtaining regulatory approvals and engaging professional advisors. The company is also seeking ratification for preliminary measures undertaken as part of the capital-raising process.
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The board is authorized to implement all necessary actions and resolutions required to execute the plan effectively, reaffirming that previous steps taken in this regard are ratified. The statement assured stakeholders of the company’s commitment to fulfilling all regulatory prerequisites while securing the necessary expertise to navigate the capitalization process.
